Thailand slowly gets back on its feet

January 29, 2015

THAILAND’S tourism industry is recovering from last year’s political crisis, though the rate of growth is slow and external factors such as the collapse of the rouble are causing additional problems for resort destinations like Phuket.

According to the Tourism Authority of Thailand, the country received 24.8 million visitors last year, down 6.7 per cent from 2013. The NTO has set this year’s target at 28 million.

Tourism and sports minister Kobkarn Wattanavrangkul told the Daily: “We are recovering, although there is not a big increase (in arrivals from the same period last year). It started picking up over the last three months. Another good sign is that the spending per head is increasing.”

While authorities say they are targeting quality tourists, mass markets such as China and Russia are important with the downturn in arrivals from the latter, adding to the local industry’s woes. This is also leading both the ministry and the NTO to focus on building business from high-spending source markets such as Europe.

“Russia is still dropping, so we are targeting other European markets,” said Kobkarn. “The quality from Europe is very good; they spend more and stay longer. We’re seeing an increase in intra-ASEAN (travellers) and we are developing the ‘Weekend Destination’ to attract people (from the region) to come to Thailand for a short break. We have everything they need here: medical, wellness, golf, food and shopping.”

Travel companies from Thailand too, say that business is starting to improve. Patricia Weismantel, product manager, Spice Roads, said: “Things are getting better from last year. We are lucky as our clients tend to be more adventurous and are less likely to be put off by the news, but it has been slow.”

Netnapa Tadakittikul, senior sales manager Asia-Pacific, Outrigger Resorts, said while the Thai market has started to recover, Phuket in particular was hit hard by the drop in visitors from Russia.

“The beginning of Q4 was starting to look good, but then we had the rouble crisis,” she said. “Russia makes up about 40 per cent of our market in Phuket. Q1 is looking okay though. The pace is slow but it is picking up, and bookings for May and June are looking good.”

Competitive hotel prices make Spain a bargain

By TTG Asia

January 29, 2015

THE weak euro and fierce competition may be keeping hoteliers in Spain worried, but the low room rates also make the country an attractive destination for buyers, according to UK-based wholesaler JacTravel.

Terry Williamson, JacTravel’s CEO, commented: “We are currently more optimistic about Spain than we have been for some time. Clearly, aggressive competition has made the Spanish hotel market more competitive and, coupled with the decline in the value of the euro, it is better value still, so this is an excellent moment to visit Spain.”

Looking back on wholesale rates over the past three years, JacTravel saw prices come down across cities and across star ratings in Spain by an average of around 10 per cent from 2012 to 2013 and in 2014 they stayed low.

Rita Buffa, JacTravel’s senior contract manager in Madrid, said: “The price collapse in 2013-14 was the most drastic I’ve seen. Hotels not only suffered the lowest occupancy in history but lower rates have forced severe cost cutting and even closures.

“The good news is that clients are starting to come back – 2014 has seen an increase in the numbers booking but they are doing so at lower prices,” said Buffa, adding that JacTravel has shifted more roomnights as a result.

Madrid has been worst affected of all the major cities, suffering declines in wholesale rates of nearly 30 per cent for a five-star hotel room in 2013. Last year, rates rebounded but only in the three- and four-star categories; at the five-star level, rates fell further and are now 40 per cent down on 2012. “A golden year of selling at higher prices has yet to come”, said Buffa.

Mabel Ariu, JacTravel’s senior contract manager for Barcelona, said: “By comparison with Madrid, Barcelona had been more resilient. It did not suffer such heavy declines in 2013 and at times in 2014 room rates were close to the previous year. As a destination, it is growing, thanks to new air links to the Middle East with Emirates and increased traffic from Latin America due to a tie up between TAM and Iberia.

“However, the increase in demand has not pushed up hotel prices because of a strong increase in supply, which has caused downward pressure on room rates. At the end of an eight-year period from 2008-2016, Barcelona will have seen the opening of about 80 new hotels and 2,300 apartments.”

She continued: “Now is a great time to come to Barcelona. It is Europe’s number one cruise destination; it has great air links, it has fantastic culture, a vibrant city centre and the beach. It has also marketed itself compellingly abroad as a conference and short-break destination, offering more aggressive promotions than ever.”

JacTravel has increased market share according to its media statement, growing its number of bookings in Madrid and Barcelona collectively by 48 per cent in 2014 and by 52 per cent at the start of 2015, compared with the same period last year.

Philippines readies to play ATF host next year

By Hannah Koh

January 29, 2015

GIVEN that 99.2 per cent of total foreign arrivals last year travelled to the Philippines by plane, airlines and infrastructure development are therefore a priority for the destination, said Benito Benzon, undersecretary of tourism development, Philippine Department of Tourism.

Benzon was speaking at a media conference at ATF 2015, where the Philippines revealed further plans to boost the country’s infrastructure and promotion efforts in the run-up to hosting the next ATF in Manila.

Tourism secretary of the Philippines, Ramon Jimenez, told the Daily the refurbishment of Ninoy Aquino International Airport’s Terminal 1 will be completed by 2015 and Terminal 3 has begun full operations. An airport skyway connecting Terminal 1 to the new district Entertainment City, where ATF 2016 will be held, will also be completed this year.

Bengzon also announced that airport upgrading in destinations like Kalibo and Palawan are expected to finish in the next 12 to 24 months to offer travellers “seamless connectivity”.

The country is also drilling down on niches such as English as a second language, which sees many South Koreans coming to study English, besides cruising, medical tourism and diving.

On the promotions front, the Philippines is now being site-specific. “Our ‘power branding’ phase reached fairly high levels of awareness for the Philippines, and it’s now time to push for awareness for specific areas,” said Bengzon, adding that advertisements now feature destinations like Camisur or Boracay.

Another focus is the MICE market, which Jimenez said is an “extension of the It’s more fun in the Philippines campaign”. The Fun Works campaign is already live on media and will support the Philippines’ aim to boost this segment with ATF 2016.

Growing air links pave for more creative ASEAN packages

By Mimi Hudoyo

January 29, 2015

THE recent addition of new airlines and services into the ASEAN aviation landscape has greatly increased regional connectivity by linking up secondary destinations.

Following the announcement of Air KBZ in starting flights between Yangon and Chiang Mai,Apex Airlines is now the latest entrant to South-east Asian skies, launching services between Nay Pyi Taw, Dawei and Myeik in the south, and between Yangon and Sittwe in the west.

Buyers at ATF welcomed these developments, saying the growing air connectivity will help to open up the region and create new products.

“In 2013, Vietnam Airlines opened direct services between Ho Chi Minh City and Jakarta and it immediately boosted traffic between the two countries,” said Elgin Agrigento, managing director of Itrarep.com Indonesia, adding that Garuda Indonesia’s recent codeshare agreement with Myanmar Airlines has enhanced connectivity between Jakarta and Yangon too.

Komsan Suwannarat, operations and product manager of Thailand-based Smart Travel, which has been packaging Laos, Cambodia and Vietnam into one itinerary since last year for high-end travellers from the US and UK, said the increased flight connectivity will provide better options and pricing for its 20-day itineraries.

Monika Tigges, product manager Asia and Arabica, Explorer Fernreisen Germany, said: “With better connectivity, we can be more creative (with itineraries).”

“Some major cities are still not connected,” Itrarep.com’s Agrigento remarked. “There are no direct flights from Cambodia and Laos to Indonesia, or from several countries to the Philippines.”

Despite the “good interest in Bali” among Nepalese, Arjun Sharma, managing director of Kathmandu-based Shiva Travels, pointed out that the company has to package Indonesia with Malaysia due to the lack of direct connections from Nepal.

Shirish Trivedi, president, Travel Leaders US, agreed: We want to combine countries, instead of staying 10 days in one country like Thailand. We want to recommend Cambodia and Myanmar, but, for example, if you are in Chiang Mai, you need to return to Bangkok to connect to Yangon.”

Andy Carroll, global head of sales and marketing of Exotic Voyages Vietnam, cautioned that with new airlines, or domestic airlines going regional, there are always concerns about reliability and quality.

Additional reporting from S Puvaneswary and Paige Lee Pei Qi.

Myanmar’s Apex Airlines poised for takeoff in March

By Sid Dhartha

January 29, 2015

MYANMAR’S newest carrier Apex Airlines will begin operations in March, making it the 10^thairline to add to the country’s small but rapidly growing aviation sector.

Based in Nay Pyi Taw, Apex Airlines will initially operate to domestic destinations such as Yangon, Sittwe, Dawei, Myeik and Kaw Thoung using a new ATR 72-600 aircraft.

“Our first ATR 72-600 aircraft will arrive in mid-February and we will start operations from end-March. We will receive a second aircraft between June and July, and the third aircraft will arrive between September to October,” Selva Kumar, COO of Apex Airlines, told TTG Asia e-Daily.

Explaining the decision to base the carrier in Nay Pyi Taw, Kumar elaborated: “Presently Yangon Airport is too crowded, so the ministry of transport suggested Nay Pyi Taw as a base. Nay Pyi Taw’s future airport will have good facilities and capable of accommodating many aircraft, and (the capital’s) many hotels and convention centers make it a good MICE destination.”

The airline has plans to expand to Myitkyina, Mandalay, Bagan, Thandwe, Heho, Kyaing Tong and Tachileik.

“We aim to fly international routes in 2016, not just to South-east Asia but also to South Asian destinations such as India and Bangladesh,” he added.

Myanmar currently has nine domestic airlines, namely Air Mandalay, Yangon Airways, Air KBZ, Mann Yadanarpon Airlines, Air Bagan, Asian Wings Airlines, FMI Air Charter, Golden Myanmar Airlines and Myanmar National Airways.

Charlie Dang appointed as Starwood regional vice president SE Asia

By TTG Asia

January 29, 2015

STARWOOD Hotels and Resorts has named Charlie Dang as its new regional vice president for South-east Asia.

In his new role, Dang will be responsible for developing and implementing strategic plans for the company’s growth and development across South-east Asia, including Singapore, Malaysia, Indonesia and the Philippines. He will also oversee the operations and financial performance of Starwood hotels in the region as well as further build relationships with key stakeholders.

Prior to this appointment, Dang served as vice president of operations for Greater China, leading his team through strategic counsel and ensured successful openings of new hotels in the region.

A Malaysian native, he joined Starwood in 1993 and has since worked in various operational and management positions.

Rob Nelson takes helm of Brisbane Convention Bureau

By TTG Asia

January 29, 2015

BRISBANE Marketing has appointed Rob Nelson as the chief of Brisbane Convention Bureau.

In his new role as general manager, conventions and business events, Nelson will focus on increasing national and international sales efforts including the sales team at the Brisbane Convention & Exhibition Centre, and Tourism & Events Queensland.

Nelson joins Brisbane Marketing from an extensive career in major events, sport and general management consultancy. He was previously managing the marketing & commercial and group events roles for Events SA at the South Australian Tourism Commission.

IT&CM China 2015 unveils new venue, sellers

By TTG Asia

January 29, 2015

INTO its ninth edition, IT&CM China 2015 will take place at a fresh venue in Shanghai this year.

Deemed the Pearl on the River, Shanghai Convention & Exhibition Center of International Sourcing (SHCEC) is located in the centre of Shanghai Changfeng Ecological Business District, surrounded by Suzhou River and adjacent to Hongqiao business area. SHCEC has a total area of 9,000m² of conference rooms, 16,000 m²of exhibition area, 5,000 m² of catering area and 800 underground parking lots.

Furthermore, three properties from the Marriott Group – JW Marriott Shanghai Changfeng Park, Renaissance Shanghai Yangtze Hotel and Shanghai Marriott Hotel Parkview – have partnered with IT&CM China as official hotels for over 400 hosted delegates.

At the same time, IT&CM China is expecting a 25 per cent increase in MICE suppliers and showcase at Thailand’s 60m² pavilion, which is fronted by Thailand Convention & Exhibition Bureau (TCEB) and includes first-time participant Thailand Incentive and Convention Association.

On the motivation of returning with a larger presence, Vichaya Soonthornsaratoon, director of meetings, incentives and conventions department of TCEB, explained: “China has been one of Thailand’s top three market sources for MICE travellers for the past five years. In 2013, it rose to claim the number one spot. With such a strong performance record and bright prospects, we need to deepen our focus on China. Through our participation at IT&CM China, we will also create more opportunities for our Thai MICE suppliers to meet MICE buyers in China.”

More than 600 international and domestic buyers can be expected at the 2015 show, in addition to long-time exhibitors as well as new players such as Berlin Tourismus & Kongress and Business Events Australia.

Heike Mahmoud, CMP, director conventions of Berlin Tourismus & Kongress, said: “Our goal is to develop and expand our network in China and to promote Berlin’s diverse offers – the modern hotel landscape, the city’s exceptional incentives and high-class restaurants. With its good networking options, IT&CM China 2015 will be a great opportunity to intensify our cooperation with Chinese partners.”

Echoing her agreement is LC Tan, regional business director – Greater China, business events of Business Events Australia: “Trade events like IT&CM China have strategic importance to deepen and strengthen Australia’s relationship with Chinese buyers and business partners as well as create awareness for its trade engagement programme and tailored tools for the Chinese market.”

Over 600 international and Chinese buyers attended the 2014 event, of which some 490 came from the various regions of China. This surged the ratio of Chinese buyers to an all-time high of 70 per cent of the buyer delegation.

TCEB lends weight to Thai exhibition sector with ART campaign

By TTG Asia

January 29, 2015

THE Thailand Convention and Exhibition Bureau (TCEB) has announced the launch of the ASEAN Rising Trade Show (ART), as part of its strategy to strengthen the Thai international exhibition industry to drive the national economy in 2015.

Underlined by the Think Big, Go Beyond theme, the ART campaign is endorsed by the Thai Exhibition Association, and UFI also participated as one of the judging panels.

Speaking at the Thailand International Exhibitions and Events Forum 2015, Supawan Teerarat, TCEB’s vice president, strategic and business development, said: “The ART is a three-year programme running from 2015 to 2017. The criteria for participation in the programme includes exhibitions that are new and creative, promote business sustainability for trade fairs, demonstrate the growth of international participants from AEC countries and contribute to the growth of the trade fair industry.”

Highlighting five key industries – automotive, energy, food & agriculture, healthcare & wellness and infrastructure – the ART campaign also aligns with TCEB’s strategy to provide financial support for the selected international exhibitions while expanding ASEAN MICE Collaboration programme, initiated since 2011 with the aim to synergise local association-level organisations with the government sector, to capture new markets beyond the AEC to South China.

In 2015, TCEB expects to attract over 190,400 international exhibitions in Thailand to generate a revenue of 17 billion baht (US$521 million). The bureau is targeting over one million international MICE travellers to Thailand in 2015 to contribute over 106.8 billion baht to the Thai economy.

In the 2014 fiscal year, Thailand welcomed 919,164 MICE travellers, generating 80.8 billion baht in revenue to the national economy. Among these, 157,996 are business travellers in the exhibition sector with a revenue of 13.6 billion baht. The top five countries with buyers and visitors participating in Thai international exhibitions are Japan, Malaysia, China, Singapore and India respectively.

CWT launches new centre in Manila

By TTG Asia

January 29, 2015

CARLSON Wagonlit Travel (CWT) today announced the official opening of its new centre in Manila, a state-of-the-art facility offering round-the-clock services to global clients and providing support for its worldwide infrastructure.

Douglas Anderson, president & CEO, CWT, said: “Manila’s reputation as having an excellent business climate for service organisations, its rich pool of qualified talent and inherent philosophy of customer service made it CWT’s first choice for our new centre. As we grow our business around the world, an efficient, customer-focused team is key to ensuring our clients’ travel needs are well-managed.”

The new facility includes a consolidated service centre providing internal support to CWT offices including recruitment and IT service desks; a global technology development team for products and tools; CWT’s global security and network operations centres, operating 24-7 to monitor and manage the performance of the company’s systems, data centres, networks, applications and security risks worldwide; and a centralised travel service centre.

Since it began operations in April 2014, the centre has already grown to 280 team members. Employees at the centre will also participate in a new global CWT training programme this year.

CWT has had a presence in the Philippines since the early 1980s when Rajah Travel joined the CWT network, providing travel services to CWT clients based in the Philippines. Rajah Travel will continue to provide services to CWT’s clients based in the country, while the new, expanded Manila office will support clients globally.